Thu, Jul 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Global macro dominates hedge fund returns and asset raising, while strong performing convertible arb continues to see outflows - Dow Jones Credit Suisse Hedge Fund Index

Tuesday, October 26, 2010
Opalesque Industry Update - Currency fluctuations and rising gold prices helped drive much of the global macro gains during September, cites a newly released update from the team at Dow Jones Credit Suisse Hedge Fund Index. The strategy saw gains of +2.72% during the month (+9.3% YTD) and has also been a favorite for investors returning to the hedge fund markets.

The best performing global macro fund on the DJCSHFI logged gains of 27% during September.

“On a nominal basis, the Global Macro and Event Driven sectors [event driven rose 3.20% in September, +6.3% YTD] have experienced the highest asset flows year-to-date. In the third quarter, event driven surpassed all of the other sectors with $4bn in asset flows. Nevertheless, the Global Macro sector has far surpassed the others on a year-to-date basis with $11bn in inflows. This demonstrates the desire of investors to invest their assets in tactical strategies, which have historically been able to withstand more volatile market corrections.”

Convertible arbitrage
One strategy that is still struggling to gain back investor confidence in convertible arbitrage, which has thus far returned 7.5% this year, and that gained +47.3% during 2009. It is also the only strategy on the DJCSHFI that can claim positive returns for every month during 2010 for every manager listed in the index. So far this year the best performing convertible arbitrage fund listed on the index has returned 65.7% and the worst performing fund listed has been flat.

However, even with this strong showing during 2010, these managers continue to watch assets leave their space. Convertible arb saw outflows during 3Q2010 (although admittedly they have slowed from the previous quarter), as the industry in total saw net inflows of approximately $14bn. To note, the other two strategies that saw outflows during 3Q2010 were dedicated short bias and emerging markets.

There is some sense that convertible arb redemptions continue to be from funds that remain gated, and are only flowing back out to investors now. Investors also continue to be gun shy of the strategy, which was the second worst performer during the 2008 crisis (returning -32% that year).

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe